Multifamily Vacancy Rate Falls Amid Rebounding Demand

Executive Summary

• Although slightly higher than a year ago, the overall multifamily vacancy rate fell by 20 basis points (bps) in Q1 from Q4 2025 to 4.8%, as net absorption outpaced construction completions for the first time in three quarters.
• Average monthly rent increased by 0.2% year-over-year and 0.4% quarter-over-quarter to $2,217. The quarter-over-quarter change is on par with typical pre-pandemic Q1 seasonality.
• Net absorption totaled 78,100 units in Q1, down from 120,000 units in Q1 2025 but a substantial rebound from the 1,500 units of negative absorption in Q4.
• Sixty-three of the 69 markets tracked by CBRE recorded positive net absorption in Q1. Fifty-eight markets saw improvement from Q4.
• Construction completions totaling 58,100 units fell by 30% year-over-year and are expected to decline further in coming quarters.
• Q1 multifamily investment volume fell by 6% year-over-year to $29.5 billion. While individual asset sales were down by just 2.7% to $25.6 billion, portfolio sales fell by 23% to $3.9 billion.